17 December 2010
Purchase of RMBS – End of Serial Investment Arrangements
In Operational Notice No. 1/2010 of 28 January 2010 the AOFM advised that it had accepted five proposals under a serial investment arrangement. As per the Operational Notice, these serial investment arrangements came to an end on 15 December 2010.
Four transactions were completed under these arrangements, raising a total of $2.539 billion, with AOFM participation of $700.77 million. The four transactions completed were:
- SMHL Securitisation Fund 2010-1
- RESIMAC Premier Series 2010-1
- SMHL Securitisation Fund 2010-2E
- FirstMac Mortgage Funding Trust Series 1-2010
There will be no further investments made under Operational Notice No. 26/2009 (serial investment arrangements). Issuers may continue to lodge proposals under Operational Notice No. 25/2009 (the reverse enquiry approach).
As part of the Government’s Competitive and Sustainable Banking System package, the Treasurer announced on 12 December that he would be directing the AOFM to invest up to a further $4 billion in RMBS.
To date, the AOFM has supported the RMBS market by investing a total of $12.537 billion across 42 transactions, supporting 18 issuers.